The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $

Question

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,375,000, $135,000 in the common stock account and $2,600,000 in the additional paid-in surplus account. The December 31, 2014, balance sheet showed long-term debt of $1,530,000, $145,000 in the common stock account and $2,900,000 in the additional paid-in surplus account. The 2014 income statement showed an interest expense of $91,500 and the company paid out $140,000 in cash dividends during 2014. The firm’s net capital spending for 2014 was $910,000, and the firm reduced its net working capital investment by $120,000. (Enter your answer as directed, but do not round intermediate calculations.)

What was the cash flow to creditors during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

What was the firm’s cash flow to stockholders during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

What was the firm’s cash flow from assets during 2014? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

What was the firm’s operating cash flow during 2014? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567))

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,375,000, $135,000 in the common stock account and $2,600,000 in the additional paid-in surplus account. The December 31, 2014, balance sheet showed long-term debt of $1,530,000, $145,000 in the common stock account and $2,900,000 in the additional paid-in surplus account. The 2014 income statement showed an interest expense of $91,500 and the company paid out $140,000 in cash dividends during 2014. The firm’s net capital spending for 2014 was $910,000, and the firm reduced its net working capital investment by $120,000. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

Cash flow to creditors during 2014=(1375000-1530000)=($155,000)
Cash flow to stockholders during 2014=(135,000+2,600,000-145,000-2,900,000)=($310,000)
Cash flow from assts during 2014=910,000

Operating Cahs flow= Net income from operations+ decrease in working capital

Net income from operations=
Capital Expenditure =$ 910,000
Capital expenditure is created by below:
(-) decrease in working capital =(120,000)
(-)increase in long term debt =(1375000-1530000)=($155,000)
(-) increase in common stock =(135,000-145,000)=($10,000)
(-) increase in paid in surplus=(2600000-2900000)=($300,000)
= net income after dividend and interest expense
=$325,000
(+)dividend=$140,000
(+) interest expense $ 91,500
= net income before dividend and interest expense = $ 556,500

Net Income from operation =$ 556,500
(+) decrease in working capital =$ 120,000
total cash generated from operation= $ 676,500

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